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Power Lunch

News/Business. Sue Herera, Tyler Mathisen. Today's news on the economy, markets, real estate, media and technology. New. (CC)

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Simon 9, Ibm 8, S&p 6, Tyler 6, Ty 5, Watson 5, Kohl 4, Portland 4, Downtown Portland 4, Africa 4, Campbell 3, Penney 3, Usaa 3, Italy 3, Jon 3, Kenny 3, Ford 2, Chrysler 2, Sears 2, Bertha 2,
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  CNBC    Power Lunch    News/Business. Sue Herera, Tyler Mathisen. Today's news on  
   the economy, markets, real estate, media and technology....  

    February 28, 2013
    1:00 - 2:00pm EST  

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delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ all right 37 we tallied our results of the debate earlier and you said mike murphy made the better argument. final trade time. joe? >> i think gold is going to 15.25. >> murph. >> titan. >> splv, like it. follow me on twitter. are we going to make new highs
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on the dow today? >> i don't know. >> no. >> halftime is over. "power lunch" and the second half of the trading day starts right now. >> we will get you one hour closer to finding out whether the dow will close at an all-time high here on "power lunch." dow hitting a fresh five-year high. it is of course close, close, 75 points distance from its all-time high. so how is the smart money riding this rally? where are they putting money? where are they putting it and where do they go from here? >> we have lots of other stories here. four smart stocks for this rally. less than 48 hours to go until the automatic spending cuts go into effect and members are already leaving for the weekend. congress people, look at them go. members only. they are leaving. they're out of here. they need rest. defense stocks trading at all-time highs. sue is away today. there you see the defense stocks, we will see what happens with the defense budget if the spending cuts go into effect. sue is out today.
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simon hobbs is in for her at the exchange. hi, simon. >> hi, tyler. let's check how far we are now from the all-time highs on the dow. remember, that we hit it october 9, 2007, 14,164. there you see, 75 points away. and i can show you that on the s&p as well. let's switch over and look the a all-time high on the s&p, and you will see the s&p 45u7b index obviously. there you will see we are 45 points away from the all-time high there. now, bear in mind, in terms of market moves, points on the s&p is ten times roughly as big as a point on the dow. so s&p underperforming as we seek to hit those all-time highs. let's bring in bob pisani and speak specifically about the possession we have today. after big gains earlier in the week is overwhelming. >> not enough to move the dial. look at the dow here.
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we are used to the triple digit gains here. this is only a 50-point gain for the dow jones industrial today. advancing and declining stocks, take a look at sector leaders. you still get broad participation. see consumer discretionary. healthcare and consumer staples also strong early on. this is broad participation. one of the reasons the market has been strong. in terms of the leadership, there's the transports this year on the white line, up 13% this year. there is dow industrials on bottom line. you see transports, dramatically outperforming. finally, i want to know, home depot is helping the dow. good numbers since its earnings. there is 12-year. simon, just a point or so away from historic high on home depot. $70 back in april 20000. we are approaching that. >> let's bring in director of o'neill securities. kenny -- >> we are just churning, right? digesting, after what we did on monday and tuesday and
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wednesday, mark set digesting. you said it today, gdp didn't really knock the stocks off, right? listen, everyone is talking about sequester on friday. >> this is automatic spending cuts. >> automatic spending can cuts, let's just under. 12:00 a.m. friday, it doesn't really mean anything. the world doesn't come to an end. but cuts don't take effect at 12:00 friday morning. only can 40 billion take effect this year. >> what are you saying? it is a discounting mechanism? >> exactly right. >> it is not worry -- >> it is looking ahead eight to ten months, the end of thei the year, not pricing for friday, not at all. >> and $40 billion -- we are talking less than 1% -- >> that's right. >> and with the continue is resolution. if the government shuts down, that's a major problem. >> that's different. but that's a different conversation for a week and a half from now. >> let's leave it there. >> thank you both.
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kenny and bob. back to you, ty. >> thank you. where is the smart money investing in this rally? are they investing? founder and ceo of destination wealth management and cnbc contributor. michael, welcome. what are you buying and what are you selling as the stock market approaches an all-time high on the dow? >> first of all, let's clarify what all-time high means. that means if you invested in october 2007, tyler, i hate to be a bummer here right away, that means you are breaking a even. congratulations. what are we buying, what are we selling? reducing our energy positions. we think oil would be under pressure given how we have a fairly slow economy here in the u.s. as indicated by gdp. and of course continuing disaster happening in europe. emerging markets are bouncing back. but not consuming as much commodities and energy as they have been. we have reduced our position in gold. we think gold is under pressure because hedge funds are raising so much money right now trying to take care of redemptions and
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in terms of what are we buying, consumer staple stocks. companies like nesle, telecommunication stocks to participate in. continuing wireless infrastructure build-out. companies like vodafone. >> and you like campbell's soup among others. is that because you are playing it or you think campbell's like heinz might be a juicy takeover tarlg snet. >> let's think about what our strategy is. they will say buy this sector, buy that sector. we are dealing with real people's money. so we make sure we have our assets in different places. campbell's is an opportunity for us to get staples and yes, we think it is a potential take over target like heinz. slow and steady cash flow company. on the other hand you have companies like qualcomm that are more in technology infrastructure. you play both sides of the equation. that's how you protect yourself,
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if in fact sequestration is a disaster. but it is also the way you participate in the market rally if you continue to move forward. >> thank you very much, michael. >> tyler, if when we do hit the all-time highs, who will be the hero of the day? arguably ben bernanke. there is a rally you could argue on, steve, inspired by the fed. back to you. >> fed chairman and two key things for markets, two days of testimony. first suggesting the outlet for asset purchases this year, is more secure than investors believed in prior several days. but second, he even said fed's easy monetary policy could be secure in years. i call that a stealth easing. qe benefits outway cost that is one of his points for this year. then he said, 6% unemployment is likely until around 2016. then, this notion of rethinking the exit which i call the stealth easing, these comments from fed chief that the fed needs to reconsider exit strategy calling for selling assets that bought over three to
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five-year period after hiking rates. now he is saying maybe not sell them at all. here are the results of the last cnbc fed survey. one of the best measures for what the market thinks. 35 asset sales in 2013. three quarters thought '14 and '15. bernanke hinted at more easing from the fed. the chairman's komt of the fed's easing policies long last from traction and we have seen some of that in interest rate sectors like housing and auto in the recent economic data. >> so steve, for people down here trading stocks, what does the landscape look like in the future? >> it is kind of interesting, simon. i think two things have happened. one is that we kind of got back to where we were before there were doubts about fed policy this year. and now maybe 90 point above when those doubts really started to sell off. so i think what we would be returning to the track we were on of this maybe slow steady grind, based on the outlook or
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positive outlook for fed action. >> in other words, bernanke puts under the market. >> i think that's right and i think is maybe more extended than we thought before, simon. >> seef, thank you very much. steve liesman, back to you, ty. >> thank you, simon. jc penney getting wacked today and why not. reporting the shafrpest drop in sales. courtney, where is bill ackman in all of this, big share older, very active shareholder in penny and can ron johnson survive it? >> he is in the red by quite a lot. ackman is. as of december losing $400 million on the jc penney stake. if you take the valley of the stock yesterday as of low he today, that a loss of $129 million for jackman -- >> just as of today. >> as of today. >> and sales have not responded. stock has done exactly the
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opposite of what you would want. >> true. but ackman is still very supportive. i believe we have a soundbite where he says just that. everybody else might be negative but this might be the time to buy. this this is from two weeks ago. >> the press is unbelievably negative. ron gets picked on. my general experience is when efrp thinks you are completely stupid, very, very bearish on the company, is probably time to look at the stock. >> let's talk about kohl's. one would think kohl's would be the beneficiary of jc penney's lows, not so much. >> not so much. up almost 17% at the year-end. they have inventory, but the wrong inventory. the other problem is a real estate problem. if they don't like what they see, it is harder to turn around and walk into kohl's because kohl's aren't anchored at the malls. it is a thoughtful trip to kohl's. >> exactly.
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>> as opposed to a strip mall. >> let's talk about sears which had it its own problems. some better than expected and maybe better for the wrong reasons. >> when we say bet are than expected, a handful of analyst cover sears because the float is so small. expectations, i would even almost take with a grain of salt. so yes, they beat on those expectations but they did a lot of cost-cutting. if you've been into sears, you can tell, they haven't made much investment in the store or inventory. people want newness. >> yeah, kmart too. same thing. just not competing as much as they should. simon, down to you. >> i want to squeeze in one more stock. lower after the book seller reported, hurt by a sharp 26% drop in nook sales and ebook business. overall revenue falling more than 10%. as we told you earlier in the week. i have a chairman leonard riggio is looking it take the retail
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business private. >> all right, government spending cuts, going into effect tomorrow. as you know, defense could be hit. defense stocks hitting new all-time highes. what should you do? by, sell, do nothing? who knows. dow getting closer to the record. there you see. 14094, all-time high. 14,164. it is then 70 point away. impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.
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welcome back "power lunch." i'm josh lipton. ceo of reality trust will step down next month. steven roth will assume the ceo spot as well. vornado is the biggest investment trust after simon property group. down some 3% right now. tyler, back to you. >> josh, thank you very much. tomorrow is the deadline for automatic federal spending cuts and congress is starting to leave for the week pend 7 there goes some of the members, fleeing the capitol. so what is going on? is there still time for a deal or is a deal really what we need right now? representative kevin brady is republican from texas and he is chairman of the joint economic committee. welcome, good to have you with us, sir. >> thank you. i believe you assume there is no prospect for a deal to avert the spending cuts that kicks in midnight tomorrow night. is that such a bad thing?
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>> no, it isn't. i think is absolutely necessary. this was a bipartisan agreement. idea proposed by the president, agreed to by republicans more than a year ago. in fact the president threatened to veto any change in the cuts last year. and so, i think while these are relatively modest and a tiny, tiny part of our economy, i think it is finally time we get some real authentic spending restraint in this government. >> a small part of the economy. i take your point. and even a relatively small part of the spending overall. but in terms of the spending that will be affected, because so much has been taken off the table, with respect to these cuts, it is a -- it is a more -- and they will phase in over the next seven months, it is a more significant cut. i'm curious about your district not knowing exactly where it is. what will be effected in your district if these can cuts go through and are sustained.
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>> a lot of this is conjecture. the president is threatening to close down a runway at bush intercontinental airport, which doesn't make sense. faa spends hundreds of millions of dollars a year on consultants, 200 million a year on airports to nowhere, and i think you could pay a consultant 25 bucks to tell you don't close down runways. it is hard to know, you know, sort of differentiate the fact, fiction, scare tactics and truthfully the modest savings that will take place. >> i think we all could agree that a better way to achieve spending cuts would be to target them p the way that you seem to be proposing. not this across the board approach even though there are people who think that's really the only way can you do it. nobody seems willing to have their ox gored here. isn't it the nature of the across the board cuts that things like the shuttering of runway at bush intercontinental would take place? it is the nature of the game,
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isn't it? >> well, what's frustrating, is, look, there's been plenty of time last year to provide flexibility. i think the president would like it now. i don't know why he is waiting to meet with our leaders after the spending cuts take place. but yeah, we are prepared to give the president our military especially, but agencies flexibility to set priorities. but right now, it is really a scare game. my point is, the way our global competitors have cut spending and got their common going is different from this. but it is still a start. >> you know, the stock market, congressman brady, i don't know how close you watch it, but you must watch it a little, is within 70 points of an all-time high. i wonder if would you fast forward for me 30 days, to the end of march when that continuing resolution expires. is that really where the rubber is going to meet the road? >> you know, actually -- no. the answer is no.
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here is why. i think actually march be spent accomplishing a couple of things. one, the house. and i think the senate and president will agree on some flexibility within the savings cut. new lower budgets. i think we will agree fairly readily on how to fund the government for the rest of the year. i think that's fairly simple. march, though, requires the house and senate to lay out their budge chet answers the question for the market, which is, is washington serious about spending their or addressing the spending crisis especially our long-term spending problems. i actually think the market will be looking that over the next 30 days. >> very interesting month, congressman brady. thank you for being with us. march madness isn't just a basketball tournament, is it? >> yes, sir. >> ty, in that graphic we just showed you, marsh is the critical month for concerns on government spending cuts in the military. despite that, defense stocks have done pretty well this year. they rallied, certainly big time yesterday. in fact the defense sector is
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now up 7.25%, as you can see, for the year so far. let's bring in richard aboulafia, a defense analyst and consultant for the teal group. welcome. i say the defense stocks have done recently well. today we do have news from lockheed martin, the pentagon's biggest contractor suggesting that actually sales this year will drop by more if the automatic spending cuts kick in and future years will also be materially affected. what is your view on the sector? >> well, right now, there's just a lot of fear but there has been for some time. so there might be a certain degree of recovery, realizing that it is bad but not the apocolypse that some people have painted it as and there is a good chance that some damage might be undone in that interim period. so while we don't like living in uncertainty and while there will be paying under almost any scenario, it certainly doesn't mean the end. there are definitely positives for this industry in the sector.
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>> which is the greatest threats. automatic spending can cuts or the fact that you have a president who is in his second term and therefore perhaps more able to cut spending programs that might hit particular cities or regions and a new defense secretary. >> you know, it is interesting. of course a lot of that is simply by events. obama didn't seem it make that much of an anti-defense move in its first term. it was accompanied by the afghanistan surge. so there was just so much he could do. but right now, you have definitely got a move towards, if not isolation, definitely a move from intervention, appointment of secretary hague el as you point out, is definitely endorsement of that. even within that, within the republican party, there is a danger that they are focused on, moving toward budget talks rather than defense and foreign policy talks. so it is tough to see who carry theory the mantle for defense. >> thank you richard.
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richard aboulafia from the teal group. >> on the back of its earnings and what a miss, stock down 75% over the past one year. so where does the on-line deals site go from here? and as we head out, let's look at financials. there they are. all higher. not so much, but higher. we are back in two minutes. ♪ [ male announcer ] to hold a patent that has changed the modern world... would define you as an innovator. to hold more than one patent of this caliber... would define you as a true leader. ♪ to hold over 80,000... well that would make you... the creators of the 2013 mercedes-benz e-class... quite possibly the most advanced luxury sedan ever. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. all your important legal matters in just minutes.
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lunch." i'm julia boorstin in los angeles. a tale of two very different companies. groupon with disappointing earnings, taking a letter cuts on deals and issued a dim outlook. this brings the deal a day business down more than 75% since november 2011 ipo. now the very other end of the social spectrum linkedin recently has been benefitting from positive analyst notes as well as survey finding it is the very top tool for private companies. linkedin has been consistently growing all three business lines, quite a sharp contrast to groupon. sue? >> i will pick it up. macy's not here today, julia. let's see where we are on the markets. new a session high. and we are inching closer to the
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14,164 all-time high on the d n rick santelli is live from the cme. hi, we always seem to link up, we meaning the fixed markets, to the dow. it doesn't matter. if you're a day trader, all that matters is you look at the chart of tens or two day chart of tens, unchanged on the day at 190. were lower, coming up and the reason we're coming up is, as simon pointed out, oi tn the hi of the equity session. look at euro versus the dollar. this is fascinating. it is about ready to test some of the lowest levels since it traded back up at 137.20. seems like a long time ago but it wasn't. this is a very interesting pattern. open up to early december. technicians are watching this. looks like lower you could see technically related selling and last chart, let's look at mirror image.
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if you look at dollar index while that's going on in the euro, you're about ready to make new highs going back to august. back to you. >> rick, thank you very much. ibm has been meeting with analysts today and we have a big exclusive from there. it is the first time big blue has allowed broadcast and with the stock stuck in the $200 range, is it time to get in now? there's the one-year. you can see, it's basically flat. as we head out, let's look at the dow. we are now at session highs, look at . about 40 points, just 40 points from an all-time high. revolutionizing an industry can be a tough act to follow, but at xerox we've embraced a new role. working behind the scenes to provide companies with services... like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%... and processing $421 billion dollars in accounts payables each year.
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dow jones industrial average just 43 points away from all-time high. sitting almost at the session highs and it looks like we could possibly cross that threshold this afternoon. as stocks rise, gold is selling off again. let's get to bertha coombs tracking that action at the nymax, bertha. >> boy, a real move in gold, if you look over the last few
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months, closing down for the month and makes the fifth straight month of decline the longest losing streak for gold in 16 years. a lot of traders saying, it is looking bearish here. whatever rally you see is more of a sell opportunity and gold, silver not much better. worst performer for the month. down nearly 9% for the month. more after sea saw move but nor volatile and copper down again today and down this month as well ahead of chinese pmi numbers due. not much expectation from more demand there, simon? >> thank you, bertha. . bob, are you impressed? >> well -- >> a round of applause. >> they are. people cheering, because there are military people coming on the floor. i think one of the old members are retiring. simon, this is one of the great old traditions on the floor. one of the members been here for a long time is retiring. the whole floor basically stops, comes over and says hello to everybody and congratulates them
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and gives them -- there you go. some of the old members retiring. and a lot of these people have been here for 40 years. and not as many as they used to be. when one of them leaves, it is kind of a big thing here. probably several hundred people all gathered around talking about what's going on. let me move on and talk about the markets. take a look at dow industrials. about 30 points and if you wonder why it happens, no particular news out there but we did get action in spiders and triple qs. those are etfs, fast money people use. it did spike up. there was some buying that happened quite simply. a lot of people come in. short the market early on and when the market doesn't go down much in the middle of the day, at some point they have to cover. it may be as simple as that. maybe not that satisfying. there you see, kohl's and simon i want to point out, historic high for transports. look at that.
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13% increase this year. 7% to for industrials. >> let's get to the nasdaq and check in with seem seema mody. how is it looking? >> the key psychological lekss that traders are watching, a level we hit last week. we did not get the second day confirmation that traders are looking for. monster beverage, company hurt by higher expenses but the stock is higher. a generic drug maker, strong earning on top and bottom line. acquiring an injectables drug unit from an indian firm. the stock with a 52-week high. netflix, mark newton saying the stock can move higher to can 208. that's his next target. >> thank you, seema. ibm with the first analyst meeting. jonfortt is in san jose with a
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special guest. jon? >> hi, tyler. i'm here at analyst meeting. they don't normally have press here but we are here in part because this is the research facility that specializes in big data. ibm want it put a focus on that so they brought analyst here. last time they did a special location like this is bringing analysts to india in 2006. senior vice president head of ibm research is with me. thanks for sitting down. tell me, you recently with the rest of ibm's top brass went to africa. why kbo there when you're talking about big data? what's the opportunity? >> sure. good morning, jon. we went to africa as a team. actually the first time that our chairman brought us all to a place outside of new york together. because we view the opportunity in africa as immense. we have 12 research labs now around the world and we chose to put our 12th research lab in nairobi, in kenya, because of
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the opportunity for us in africa. and it is just, not just the economic opportunity, but the challenges in africa are very unique, requiring different sorts of technologies than we might develop here in the united states. so having our researchers in the environment immersed in difficult healthcare issues, city issues, as africa urbanizes, really raises the opportunity for ibm to be on the ground. >> now, for investors, this translates potentially into margins. argument that ibm is basically our researchers are smarter. we were working at this big data problem. it is the differentiator for the future. tell me, what are the most critical sorts of problems that ibm will be able to solve and capitalize on. >> our core value, jon, is innovation. we invest in innovation. we invest over $6 billion a year in r & d. much more than our competitors.
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because we believe we must constantly remix and reinvent our business up to higher and higher value to our clients. that of course results in increased margins. as we look at this world of dig data now, which is growing at exponential rates, cloud technology, et cetera. our clients are just buried in data that they can't extract information from it. analytics is the big play and today we announced to the world that we are increasing our analytics and big data revenue in 2015 roadmap from 16 to $20 billion. >> that's a big jump. john kelly, thank you for being with us. telling me i got wrap. back to you. >> thanks, jon. tour guest, chief operator f idc, mr. dell pratt, thank you for being with us. a calm stock over the past 12
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months, what does it need to do to move higher? >> yes, they need to find growth markets where they can show they can grow faster than the market that we think is growing somewhere in the 6% growth range between now and the 2016 timeframe. this is a logical place to go. in their sweet spot of enterprise. as the last guest mentioned, companies are drowning in data and they need smart companies to help them figure out how to maybe the right decisions. >> has watson helped them? is watson too young, too juvenile, to make a difference? >> at this point, it is really not about watson. it is about the technology inside of watson. and what they can do is ultimately cascade that technology into more affordable systems. it is interesting to note that we believe that by the 27 timeframe, about a quarter of the fortune 500 will use question and answer watson like technology to make better
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decisions. >> mr. dell prete, thank you for being with us. we appreciate your time. >> thank you very much. let's look at where the market is now. an exciting afternoon. we are closing up the month of february with a very substantial gain, 51 point at 14,127. that puts the dow 36 points away, right now, from an all time closing high of 14,164. that of course happened on october 9, 2007. but lest you get too giddy about that. that basically means if you bought in 2007, you're back to break even. meanwhile, chrysler investing in america again. phil lebeau is in indiana. phil? >> tyler, we're here because chrysler is going to be expanding transmission production. this is all part of them keeping up with demand for the jeep grand cherokee.
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let me show you comments from today. 1250 jobs will be added here. 3$374 million investment. that is the news of the day. the more interesting comments from sergio involving the possibility of chrysler ipo. >> let's leave it to the imagination of the bankers. i think they might become one can company. if it was done in 2013, i would be the happiest man in the world. >> we also asked him about the market and as everyone else, he is watching it as it moves close to an all-time high. is it getting ahead of itself? he doesn't think so. >> moving up, maybe excessive. the level itself i don't think is excessive. i think it is reflective of general sound economic conditions. and the fact that during the crisis and immediately after the
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crisis, a lot of businesses clean their act, cleaned up their act. i think they are in much better shape than they have ever been. >> sergio marchionne said, look at us now, and he says this market, while it is not moving quickly, is ahead of itself. >> thank you very much, phil. if you just joined us, this is cnbc. here are other headlines driving this session this thursday. snrs rare earth metals producer is delaying results. last month warned of significantly lower than estimated revenue and cash flow for the first half ofity year. cable vision is also moving lower. cable service provider reporting weaker than expected revenue of $1.66 billion. it took a hit to cost due to superstorm sandy but offset that with $200 million payment from dish network as part of a legal settlement. and domino's pizza, rising
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after it reported better than expected rising profits. due to pan pizza. is we will take a break. have you ever wondered what it would like to have a putting green in your own backyard? coming up, we will take you inside the real powerhouses of portland. stay with us. ♪ ♪ [ male announcer ] how do you engineer a true automotive breakthrough?
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>> warren buffett berkshire hathaway hit profit shares. up 30% over the past year versus 11.5% for the s&p. back to you guys. >> i think he is coming out with his annual lecture tomorrow. one day before the president has to send out orders for automatic spending cuts. we asked you, what is the best solution it whittle down the deficit? 15% say cut defense spending. 48%, the bulk say, cut entitlement. 4% say raise taxes. 43% say close tax loop holes. you have 48% on the other. let's find out what is coming up in a moment on "street signs." hey there, simon. lots of fantastic things. a massive jc penney roundtable. retail analyst, ex retail bosses. brand specialist, even our very own courtney reagan and jim cramer all weighing in on what this retailer needs to do now. also, a tail of two cities.
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oklahoma city and des moines. we will have the mayor of the two cities to tell us how the looming cuts will impact their cities. star of cnbc crimes show, call car chasers, they are here. they brought their beautiful cars out front. we are very much looking forward to speaking with them, "street signs" at the top of the hour. simon, over to you. >> very cool. thank you, mandy. every week we focus on top 20 real estate market. we talk it a top realtor to see what is going on in their town. let's go to portland, oregon. brad from windermere. brad, let's go over numbers on portland market.
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is 6366 listings. 1344 sold. 4.7 months inventory. median sales price 248,. and average number of days on the market is 114. >> we are challenged by inventory right now but it is picking up? don't have enough to sell. that's what they are saying in a lot of towns. the list of the week, a condo as i understand it. tell me about it for $439,000. >> this condo is at the benson tower in downtown portland. in the cultural district of downtown portland. it comes with 1,004 square feet. two bedrooms, two baths and a den. brand new floors, stainless steel appliances and it is a corner unit. so one of the best features of this unit is the wall of windows that lets in tons of daylight during the day. at night you get a lot of beautiful city lights. >> nice views there. and $4600 in taxes. been on the market four months. maybe you can get a deal there.
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let's move to the next one on devoto lane in portland for 479,500. >> this is in forest heights neighborhood. very popular neighborhood. close proximity to nike world headquarters, intel and downtown portland. 3800 square feet. three bed rooprooms, three bath. tall ceilings with tall windows over looking the city. >> look at that. that kitchen is nice. look that living room. very nice. look at the space. you know, people live well outside of new york, man. i tell you. your dollar goes a little bit further there. so that is -- >> yes it does. >> that is about 4,000 square feet built in 2004. been on the market eight months folks. maybe they are ready to sell. let's go to our powerhouse of the week. it is in the $2 34million plus neighborhood. tell me about that.
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>> this is will helm farms estate. sits on almost six acres south of downtown portland. it features 5,052 square feet. five bedrooms, four and half baths, fantastic gourmet kitc n kitchen. cherry floors, impressive fire places. panelled library. additionally, the exterior features a swimming pool, 12-person built-in hot tub, tennis court, guest house, putting green and one of of my favorite features is they converted a barn into an indoor basketball court. >> that is fantastic. maybe you should sell it to one of trailblazers. >> we can try. >> thank you very much. see you next time. >> thanks for having me. >> dow getting closer to all-time high. making the dow whole again. get the take on what it means
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will today go down in the history books? it very well might if we manage to reach the all-time high on the dow jones industrial average. tracking high, remember the target we hit, october 9, 2007, 14164. 41 points away as things stand at moment. one thing for sure. listen to what kenny says and possibly do exactly the opposite of what he tells you to do. you didn't think we would do it today. >> pass the pasta sauce. >> i'm not sure -- i think they will tease it today. i think they will take us right there and it will fail. i don't see it. it is very interesting because, i certainly didn't see it when we were talking before at 19 points. >> can i say what happened? there was no news event. >> right. >> buying interest that came in. if you look at the spy and qqq
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which is where a lot of fast money goes in, all of a sudden the volume spikes right at the same time. somebody came in and bought -- >> institutional investors now play the market. >> it could be anybody. no one sent out a press release. one point there, hit the market right, moved up. but you get these programs kicking up. >> i will say the closer you get to that number, then it is going to draw people in because buying will get buying, then get to point of -- >> performance, you have to chase it, ty. >> gentlemen, i'm going to ask mr. pisani and mr. pell carry, two guys that should know about this, all worried about italy days ago. taking us down 200 plus points and it looks like trouble would be all around us this weekend. now 40 points from all-time high. what happened to italy? >> i think the key point on italy now is that they had a successful bond auction and there is talk that ber sanny and
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berlusconi may make a deal and the one in third place, this is inside politics, but the hope is they may have a coalition. they don't want another election. hopefully, a little bit on the positive side. and the economic news in the united states. >> the economic news was getting better. but i think what monday tells us is an overreaction to the italian rey location, right? yes, an outcome that no one expected, but market around the world overreacted and bounced back. >> ecb said today that -- >> right. and yesterday afternoon mario monti said he wasn't going anywhere and would he continue to support -- >> this is an unforgiving market as well. even though major indexes are moving higher. when a company misses on earnings, think of groupon, which i always want to graul great poupon --
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>> part of the reason, ty, big part, is that corporate earning, and you look at companies reported. and investment groups with paul hickey over there. you talk about 60%, be it on the bottom line and 60% on the top line. >> you are also tied within that five years of seeing evolution, aren't you, of some market caps that fall dramatically and big weight you talk about the financials an growth of others. who knew priceline would be $34 billion company. in the wake of the financial crisis. so the tenure of the market tyler is very different. >> very different market today than it was years ago. and you look at some of the companies like hewlitt packard that lost so much or yahoo! that lost so much market share in part because their businesses moved away if them and you look at other companies that have held on to share or grown it, like apple. it is, in total, a very
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different market. you mentioned the financial services companies which aren't what they used to be in terms of market heft. >> and valuations are very different. you recall in 2007, last time we were here, with dow industrials, trading at 22 or 23 times forward earnings. today roughly around 14 times. one of the main markets is the bulls is not overvalued. very different than it was -- >> that's right. i said we talked before, market are discounting mechanism looking out six or eight months, right? >> and to your point, sergio marchionni, a lot of companies were in much, much better shape than in 2007, such as the pressure of the force they were under. >> gentlemen, thank you very much. josh lipton, thank you for being with us as well. we will be back in a moment. 32 points away from an all time
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closing high of 14,164. there you see it, about a quarter percent away. final check on the market when we return. [ male announcer ] i've seen incredible things. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel,
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